Kannect Engineers Pvt. Ltd v. Punjab State Power Corporation Ltd & Ors.

Judgment

#1. On February 20, 2025, respondent-Punjab State Power Corporation Limited (for short – PSPCL) issued a Tender Enquiry through which it invited e-bids for supply, installation, testing, commissioning, reading, analysis, integration with billing system (alongwith one year operation and maintenance) of 1000 power quality meters. In the Notice Inviting Tenders (for short – NIT), which formed part of the Tender Enquiry, CWP No.8897-2026 [2] it was stated that a pre-bid meeting with the prospective bidders would be held on 27.02.2025; the last date for downloading of tender documents was

06.03.2025; the last date for submission of the e-bid was 06.03.2025 and that the bids shall be opened on 10.03.2025.

#2. The NIT also contained a check list of 18 documents which were mandatorily required to be uploaded alongwith the bid and item No.14 of such 18 documents, which is relevant, pertained to furnishing of the required type test certificate(s) to the effect that the offered equipment was compliant with the technical standards prescribed in the NIT.

#3. Clauses 1.0, 3.0, 5.0, 6.0, 28.0 and 29.0 of the NIT provided for the scope of the Tender Enquiry, applicable standards and the general technical requirements of the equipment in question as also dealt with the manner in which the type test reports with regard to the offered equipment, meeting the applicable technical standards, were to be submitted by the bidder. Clauses 1.0, 3.0, 5.0, 6.0, 28.0 and 29.0 of the NIT are extracted below:- “1.0 SCOPE i) Design, Supply, Installation, Testing, Commissioning, Reading, Analysis, Integration with billing system and 1 year O&M of Permanent Power Quality Meters complying to IEC 61000-4-30 class A for measurement of different electrical parameters, listed elsewhere in the document, including Voltage Harmonics, Current Harmonics, Frequency, THD (of Current and Voltage), Unbalance (Current and Voltage), Crest factor, Sag and Swell, Number of Interruptions, Total Demand Distortion, Flicker etc. Meter shall be suitable for 11kV and above supply. ii) Meter should be AMR compliant with external modem through any of the port available in the offered meter, so that it can be connected to Automated Remote Meter Reading System. Meter manufacturer shall supply relevant API/software, IT infrastructure required for this purpose. iii) Reading, Analysis, Integration with billing system including O&M for period of one year. iv) Software for data downloading and analysis. v) Meter shall have EN50160/IEEE519 compliance reporting. vi) Training on installation / configuration of Power quality Instrument. CWP No.8897-2026 [3]

2.0 xxx xxx xxx

3.0 APPLICABLE STANDARDS The equipment offered shall comply with the recognized rules of technology and are therefore in accordance with the corresponding Indian/ IEC standards with latest amendments thereof unless otherwise specified. Sr. No. 1.

#4. 5. 6.

#7. 8. 9. 10. 11. 12. 13. Standard Description IEC 61000-4-30 Electromagnetic compatibility (EMC)-Testing and IEEE519 IEC 61000-4-7 measurement techniques-Power quality measurement methods Recommended Practice and Requirements for Harmonic Control in Electric Power Systems Testing and measurement techniques -General guide on harmonics and inter-harmonics measurements and instrumentation, for power supply systems and equipment IEC 61000-4-15 Flicker Measurement IEEE1159.3 IEEE 1159 IEC 61000-4-2 IEC 61000-4-3 IEC 61000-4-4 IEC 61000-4-5 IEC61000-4-6 IEC61000-4-12 IS 17036: 2018 Defines power quality data interface format IEEE Recommended Practice for Monitoring Electric Power Quality Electrostatic discharge Immunity to radiated fields Immunity to fast transients Immunity to surge Immunity conducted Damped oscillatory waves immunity Indian Standard Distribution System Supply Voltage Quality For conflict related with specification, the order of priority shall be – i) This technical specification ii) IEC 61000-4-30 (with latest amendments). Meter should conform to all the applicable standards amended upto the original date of issue of this tender enquiry.

4.0 xxx xxx xxx

5.0 GENERAL TECHNICAL REQUIREMENTS 1 TYPE 2 3 4 5 6 7 8 Accuracy FREQUENCY SECONDARY VOLTAGE BASIC CURRENT(Ib) MAXIMUM CONTINUOUS CURRENT POWER FACTOR Onboard Memory (in Mbytes)

Power quality meter shall comply with IEC 61000-4-30 class "A" standard for measurement of different electrical parameters for evaluating supply quality. Measurement of True rms confirming to Class A as per IEC 61000-4-30 and IEC62586-2. 50HZ ± 5% Suitable for operation from 110VPh-Ph or 63.5VPh-N. -/5 Amps or -/1 Amps as per requirement 200% Ib

0.0 lag-Unity-0.0 Lead 128 MB or more CWP No.8897-2026 [4]

6.0 The meter shall have capability to detect and log power quality parameters as defined in IEC61000 4-30 Class A Edition 3 and High accuracy measurements with 1/2 cycle update rate for: a) Supply Frequency - 10 Sec Logging b) Magnitude of supply voltage & Current- 10 Min logging c) Flicker – Short time and Long time PST 10 Min and PLT 2 Hours logging d) Voltage & Current harmonics upto50th order -10 min and 3* sec logging e) Over/Under voltage deviation --10 Min logging f) Voltage unbalance –10 Min logging g) Supply Voltage Dips & swell- measured in accordance with IEC-61000-4-30 in duration from 10 ms up to and including 1 min. h) Short Supply Voltage Interruptions -measured in accordance with IEC-61000-4-30 in duration from 10 ms up to and including 1 min. i) Long or sustained Supply Voltage Interruptions -measured in two indices SAIDI & SAIFI (Interruptions to be considered for duration more than 3 minutes). Note 1:- However all other Power Quality parameters as per IEC-61000-4-30 shall also be provided. Note 2: It is clarified that Meter shall be capable of giving report as per IEEE 519 for both very short time (3sec interval) and short time (10 min, interval) harmonic values. Further data logging for 10 min is required in both meter and cloud, however option for logging of 3 sec interval should be available in meter i.e. the same is configurable. Note 3: The meter data logging feature and the server polling shall be configurable as required for validation of reports generated by server on cloud. The indicative Logs are attached as per Annexure. Bidder is advised to submit logs generated from offered PQ meter as mentioned above along with bid. xxx xxx xxx

28.0 TYPE TESTS Bidder shall furnish along with the offer type tests reports as per IEC 61000-4-30 class A and other standards mentioned in Clause no.3 of this specification from any recognized lab (national or international) duly authorized for testing of class A power quality meters as per IEC 61000-4-30. Bidders shall also submit, along with offer Type Test Certificates of high quality Reinforced Polycarbonate or equivalent High Grade Engineering Plastic material used for meter housing material i.e. base/cover/terminal cover from any Govt. approved Laboratory. However, if bidder provides metallic meter module then the relevant clauses of IS 14697 will be applicable. CWP No.8897-2026 [5] Reports for type tests conducted in manufacturer’s own laboratory and certified by testing institute shall not be acceptable. The purchaser reserves the right to demand repetition of some or all the type tests in the presence of purchaser’s representative free of cost. In case type test certificate are not enclosed with the offer then the offer shall be rejected. In addition to these, the tenderers shall submit valid ISO 9001:2015 certification for meter manufacturing, ISO 27001:2005 for information security management system & ISO 14001:2004 for environmental management system at the time of opening of Tender (i.e. part- I & II of Tender).

29.0 CONSTRUCTIONAL REQUIREMENTS, METER COVER & SEALING ARRANGEMENT

29.1 CONSTRUCTION Meter shall be made of high-quality materials/components to ensure high reliability and long life. For this, a meter should be subjected to mechanical tests and to evaluate the material used in the meter, it should be evaluated with following tests as per relevant IEC/IS14697 men(oned. The meter should be sealed in such a way that the inside of the meter is not accessible without breaking the seal and tampering with the body of the meter. To evaluate the construc(on under the physical influences during packaging and transporta(on. i. Spring hammer test according to IEC publica(on 60068-2-75 ii. Shock test was performed according to IEC 60068-2-27 iii. Vibra(on test according to IEC 60068-2-6 iv. The test was carried out according to IEC 60529, protec(on degree IP54 (indoor). CAT 2 as per IEC 60529. v. Material of both the terminal block and the meter case was subjected to a glow-wire test in accordance with IEC 60695-2-1. To Evaluate the materials used and the Construc(on of the meter under the climate influences, meter should be assessed with regards to following points: i. Dry heat test as per IEC 60068-2-2 ii. Cold test as per IEC 60068-2-1. iii. Damp heat cyclic test according to IEC 60068-2-30 Note: The above tests according to IS 14697 will also be acceptable. The terminals shall be moulded/(ght fit construc(ons with barriers and covers to provide secure and safe connec(ons of CTs and PTs through the stranded copper conductors of 2.5mm size. The terminal block material was tested in accordance with ISO 75. The material of both the terminal block and the meter case was subjected to a glow-wire test in accordance with IEC 60695-2-1. The temperature of the glow-wire was 960 degree C for the terminal block, 650 degree Celsius for the meter case and cover. The materials meet the requirements. CWP No.8897-2026 [6] The terminal cover preferably be sealed independently of the meter cover. Bidder must submit the test cer(ficate to this effect. (emphasis supplied)

#4. As per the NIT, the check list of documents which were required to be uploaded alongwith the bid, is also reproduced below for ready reference:- “CHECK LIST OF DOCUMENTS CONSISTING OF TENDER/OFFER Following documents are mandatory. Bidder to ensure that these are uploaded along with the tender for it to be treated as complete document:- Details To be sealed in Remarks Sr. No. 1.

#7. EMD/PEMD (See para-13 of Schedule-'E' of tender documents) Schedule-A (particulars of the firm i.e. names & address of Directors etc.) duly filled up & signed. Schedule-B (Un-Priced Bid Schedule) duly filled up & signed Schedule-C (GTPs) duly filled up and signed by authorized official complete in all respects. Schedule-C-I (Information for appraisal of firm) duly filled up and signed Schedule-D (Schedule of Deviation) duly filled up and signed by authorized official complete in all respects and enclosing any supporting documents. Annexure-A (Detail of Testing Facilities)

#8. Annexure-B (undertaking form for Order Preference duly filled up and signed by authorized official complete in all respects. Income Tax Returns of firm as well as Directors/ partners/ Proprietor of the firm for the latest 3 years. 10. Duly Audited Annual Financial

#9. Reports or Turn Over figures certified by Charted Accountant for latest three years. Legally valid Authorization signed by Chairman & other Directors of the firm in case of Limited

#11. Separate envelope & scanned copy with tender (Part-I of tender) Part-II Fill online Part-II Part-II Fill online Fill online Part-II Fill online Part-II Part-II Fill online and upload relevant documents. Fill online and upload relevant documents. Can be submitted upto 5.00PM on the date of opening of Part-I & II or of Price Bid (i.e. Part-III) Part-II Scan & Upload Part-II Scan & Upload Part-II Scan & Upload CWP No.8897-2026 [7] Companies & by all partners in case of partnership firms authorizing the signatory to sign the tender & deal with PSPCL.

#12. Memorandum & Article of Part-II Scan & Upload Association for public/ private Ltd. firm, Partnership deed for Partnership firms and supporting document for proprietary firm Schedule-B (Breakup of prices) as Part-III of offer

#13. Part-III Fill online only

#14. Type Test Certificate(s) of offered Part-II Scan & Upload

#15. Undertaking regarding liaison etc. 16. Logs generated from offered PQ Part-II Part-II Meter 17. Screenshot of Meter Display 18. Any other supporting documents enclosed mentioning the purpose Part-II Part-II Scan & Upload Scan & Upload Scan & Upload Scan & Upload INSTRUCTION: The check list be marked in confirmation of enclosing the documents mentioned therein. Bidder to ensure that the documents are enclosed in the serial order as mentioned in the check list.” (emphasis supplied)

#5. As per the above extracted clauses of the NIT, the equipment offered by the bidder was requirement to comply with each of the prescribed standards stipulated under Clause 3.0 and the technical requirements given under Clauses 5.0, 6.0 and 29.0. Clause 28.0 clearly provided that, alongwith the bid, the bidder was required to upload type test reports certifying that the offered equipment was meeting the prescribed standards and technical requirements as per recognized Indian/ IEC standards (with latest amendments). Clause 28.0 of the NIT further stipulated that in case, alongwith the e-bid, the required test reports were not uploaded, the offer made, shall be rejected. Even as per the given check list of documents, type test certificates of the offered equipment, complying with the prescribed technical standards, were mandatorily required to be uploaded along with e- bid. CWP No.8897-2026 [8]

#6. On 27.02.2025, a pre-bid meeting was held in which the prospective bidders raised several queries. One suggestion made by one of the prospective bidders namely M/s Energy Electricals was to accept the bids with type test report with regard to the prescribed standard IEC 61000-4-30 conforming to the 2015 standards as against the latest standards laid down in the year 2021 which suggestion was accepted by the PSPCL resulting in the issuance of Corrigendum-IV on 07.04.2025. Clause 4 of Corrigendum-IV, which is relevant, reads as follows:- “Sr. No. 4. Clause No. Existing Clause Amended Clause Clause: 28.0 TYPE TESTS Bidder shall furnish along with the offer type tests reports as per IEC 61000-4-30 class A and other standards mentioned in Clause no.3 of this specification (national or international) duly authorized for testing of class A power quality meters as per IEC 61000-4-30. recognized Bidder shall furnish along with the offer type tests reports as per IEC 61000-4-30 class A and other standards mentioned in Clause no.3 of specification recognized lab (national or international) duly authorized for testing of class A power quality meters as per IEC 61000-4-30. Bidders shall also submit, along with offer Type Test Certificates of high quality Reinforced Polycarbonate or equivalent High Grade Engineering Plastic material used for meter housing material cover/ i.e. base/ terminal cover from any Govt. approved Laboratory. However, if bidder provides metallic meter module then the relevant clauses of IS 14697 will be applicable. Reports for type tests conducted manufacturer’s laboratory and certified by testing institute shall not be acceptable. purchaser The reserves the right to demand repetition of some or all the type the presence of purchaser’s representative free of cost. In case certificate are not enclosed with the offer then the offer shall be rejected. In addition to these, the tenderers shall submit valid ISO High for meter Bidders shall also submit, along with offer Type Test Certificates of high quality Reinforced Polycarbonate or equivalent Grade Engineering Plastic material housing i.e. base/ cover/ material terminal cover from any Govt. approved Laboratory. However, if bidder provides metallic meter module then the relevant clauses of IS 14697 will be applicable. Reports for manufacturer’s own laboratory and certified by testing institute shall not be acceptable. The purchaser reserves the right to demand repetition of some or all the type tests in the presence of purchaser’s representative free of cost. In case type test certificate are not enclosed with the offer then the offer conducted CWP No.8897-2026 [9] certification 9001:2015 ISO meter manufacturing, 27001:2005 information security management system & ISO 14001:2004 management environmental system at the time of opening of Tender (i.e. part- I & II of Tender), tenderers shall be rejected. In addition to these, submit valid ISO 9001:2015 certification manufacturing, ISO information 27001:2005 security management system & ISO 14001:2004 environmental management system at the time of opening of Tender (i.e. part- I & II of Tender). NOTE: The bidder is required to submit type test report along with the bid, In case the type- test report submitted by the bidder conducted as per IEC 61000- 4-30 Ed.3 (Class A Power Quality Meter), albeit with certain short falls, then the PSPCL’s competent authority may accept an undertaking from the bidder that, in case an order is placed upon the bidder/ empanelled, the bidder shall get these type test(s) conducted at no extra cost to PSPCL and submit the requisite type-test reports before start of supply as per original CDP/before issue of empanelment letter by PSPCL. In case of empanelled vendor, if the sample fails during the type tests, the firm will not be considered for empanelment.” bidder (emphasis supplied)

#7. After the issuance of Corrigendum-IV the last date to submit bids was now 17.04.2025 and the date of their opening was fixed as 21.04.2025.

#8. Along with other bidders, the petitioner and respondent No.3 submitted their respective bids. The technical bids were opened on 28.04.2025 and in May 2025, bench testing on the samples provided by the bidder was conducted by the Data Assessment Committee of the PSPCL (for short –DAC) at ME Laboratory, Jalandhar. PSPCL authorities then wrote to the bidders including the petitioner and respondent No.3 seeking therein certain CWP No.8897-2026 [10] clarifications and for submission of remaining type test reports in pursuance whereof, on 10.07.2025, the petitioner submitted the type test report – IEC - 61000-4-30 Edition 2021 whereas respondent No.3 submitted a letter dated

09.07.2025 by its original equipment manufacturer i.e. M/s Siemens Limited as per which respondent No.3’s OEM undertook to furnish the type test reports pertaining to various prescribed technical standards, including IEC-61000-4- 30-Edition 2021, before supply of the equipment in question. On 24.09.2025 further tests were conducted by the PSPCL on the offered equipment in which only M/s ESFRO Solutions and respondent No.3 participated as the petitioner and other bidders voluntarily declined to participate on the ground that such re-test was not contemplated under the terms of the NIT and that the same was being conducted only to favour respondent No.3 since it had failed the test conducted in May, 2025.

#9. The petitioner and respondent No.3 were both found to be technically qualified and accordingly, their financial bids were opened on

09.10.2025, after which, on 10.10.2025, reverse auction was conducted on the government’s e-portal. In the reverse auction the petitioner and respondent No.3 duly participated. After the reverse e-auction the financial bids submitted by respondent No.3 were found to be the lowest and therefore, respondent No.3 was declared L-1.

#10. On 02.12.2025, negotiations took place between PSPCL and respondent No.3 which resulted in respondent No.3 voluntarily accepting to maintain the offered equipment for a period of 5 years instead of 01 year at no extra cost. Thereafter, on 18.03.2026, purchase order for the supply of 1000 power quality Class A electrical meters was placed by PSPCL on respondent CWP No.8897-2026 [11] No.3 after which on 29.04.2026, respondent No.3 submitted 2021 edition test reports pertaining to the standard IEC-61000-4-30 (class A). Since other test reports were still pending to be submitted by respondent No.3, PSPCL wrote a letter dated 07.05.2026 to respondent No.3 calling for submission of such reports, in pursuance whereof, on 08.05.2026, test reports with regard to EMC-Immunity standards and construction/ material and environmental type tests were submitted by respondent No.3. However, since “over and under deviation type reports” were still pending, on 14.05.2026, another reminder was issued by the PSPCL to respondent No.3 with regard to submission of such reports. The other test reports awaited from respondent No.3 were pertaining to the prescribed technical standards IEC-60068-2-27 (shock test), IEC-60068-2-6 (vibration test) and IEC-61068-2-30 (damp heat cyclic test).

#11. The controversy in the instant matter is as to whether respondent No.3 met the qualification criteria as per the terms of the NIT dated

20.02.2025 read with Corrigendum-IV dated 07.04.2025.

#12. Mr. Anand Chhibbar, learned Senior Counsel appearing for the petitioner submitted that respondent No.3’s offered equipment failed the bench testing conducted by the DAC in May 2025; such equipment was subjected to re-testing on 24.09.2025 which re-testing was alien to the provisions of the NIT; such re-test was done only with the mala fide intention of passing respondent No.3’s offered equipment; as per clause 28 of the NIT, read with the check list of documents required to be furnished along with bid, test reports, as per IEC-61000-4-30 Class A and other technical standards prescribed in the NIT, were required to be uploaded by the bidder along with its bid; such condition was modified through Corrigendum-IV dated CWP No.8897-2026 [12]

07.04.2025 only to the extent that if the type test report as per IEC-61000-4- 30 Class A which had been submitted by the bidder was not conforming with the latest amendment or had been filed with certain short falls, only such short falls or deficiencies could be made good by the bidder before the supply of the offered equipment but in the case in hand several test reports for the standards which duly found mention in Clauses 3.0, 5.0, 6.0 and 29.0 of the NIT were submitted for the first time by respondent No.3 much after the last date for submission of bids which was 17.04.2025 and that some of the test reports have not been filed even till date which clearly rendered respondent No.3 ineligible and that the operations and maintenance clause was amended from 01 year to 05 years without putting the petitioner to any notice which is also clearly arbitrary and vitiates the entire tendering process.

#13. Mr. Chhibbar sought to support his submissions through citing of the following judgments:-

#1. Kimberley Club Pvt. Ltd. V/S Krishi Utpadan Mandi Parishad & Ors. 2025 SCC OnLine SC 2323